We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Honeywell (HON) Resideo's Arm Prices Senior Notes Offering
Read MoreHide Full Article
Honeywell International Inc. (HON - Free Report) has announced that a subsidiary of Resideo Technologies, Inc. (Resideo) — Resideo Funding Inc. — priced an offering of $400 million worth of senior notes due to mature on Nov 1, 2026. This offering is anticipated to close on Oct 19, 2018.
It’s worth mentioning here that senior notes offering have been made in relation to the previously announced spin-off of Resideo from Honeywell.
Inside the Headlines
Notes have been priced at 100% of the principal amount and carry coupon rate of 6.125%. These instruments will be guaranteed by Resideo and its domestic subsidiaries.
As noted by the company, Resideo intends on using funds, which are likely to be raised through this offering as well as from its credit facilities (senior secured), to repay debt to Honeywell or its subsidiary. The repayment to Honeywell or its subsidiary will likely total $1.2 billion. Additionally, funds will be used for expenses related to notes offering and credit facility.
Planned Spin-Off of Resideo
In October 2017, Honeywell communicated that it was planning to spin off its ADI Global Distribution business and Home product offerings. In July 2018, the company decided that the spun-off ADI Global Distribution business and Home product offerings would be known as Resideo.
On Oct 2, 2018, the company declared that it will distribute one share of Resideo for every six shares of Honeywell. The distribution will take place on Oct 29, 2018. All shareholders of record as of Oct 16 are eligible for this distribution. Resideo will start trading on the NYSE from Oct 29, under the ticker symbol ‘REZI’.
It’s worth noting here that Resideo is primarily going to deal with security and critical comfort solutions, mostly for residential environments.
The spin-off is likely to mark the end of Honeywell’s portfolio transformation strategy, once it finally gets completed in October 2018. These tactical initiatives will help the company to concentrate on high-growth industrial businesses and thus boost organic growth. Further, these strategies will expand margins and strengthen balance sheet.
Zacks Rank & Stocks to Consider
With a market capitalization of $122.3 billion, Honeywell presently carries a Zacks Rank #3 (Hold). The company stands to gain from solid demand for its products, improved productivity and commercial excellence. However, it currently faces headwinds from rising costs and expenses.
Over the past three months, Honeywell’s shares have yielded 13% return, outperforming 6.3% increase recorded by the industry.
Furthermore, the stock’s earnings estimates are currently pegged at $8.15 for 2018 and $8.77 for 2019, reflecting growth of 0.1% and decline of 1% from respective 60-day-ago tallies.
In the past 60 days, earnings estimates on Federal Signal and ITT have improved for the current year while remained unchanged for Danaher. Further, earnings surprise for the last reported quarter was a positive 22.48% for Federal Signal, 6.82% for ITT and 4.95% for Danaher.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Honeywell (HON) Resideo's Arm Prices Senior Notes Offering
Honeywell International Inc. (HON - Free Report) has announced that a subsidiary of Resideo Technologies, Inc. (Resideo) — Resideo Funding Inc. — priced an offering of $400 million worth of senior notes due to mature on Nov 1, 2026. This offering is anticipated to close on Oct 19, 2018.
It’s worth mentioning here that senior notes offering have been made in relation to the previously announced spin-off of Resideo from Honeywell.
Inside the Headlines
Notes have been priced at 100% of the principal amount and carry coupon rate of 6.125%. These instruments will be guaranteed by Resideo and its domestic subsidiaries.
As noted by the company, Resideo intends on using funds, which are likely to be raised through this offering as well as from its credit facilities (senior secured), to repay debt to Honeywell or its subsidiary. The repayment to Honeywell or its subsidiary will likely total $1.2 billion. Additionally, funds will be used for expenses related to notes offering and credit facility.
Planned Spin-Off of Resideo
In October 2017, Honeywell communicated that it was planning to spin off its ADI Global Distribution business and Home product offerings. In July 2018, the company decided that the spun-off ADI Global Distribution business and Home product offerings would be known as Resideo.
On Oct 2, 2018, the company declared that it will distribute one share of Resideo for every six shares of Honeywell. The distribution will take place on Oct 29, 2018. All shareholders of record as of Oct 16 are eligible for this distribution. Resideo will start trading on the NYSE from Oct 29, under the ticker symbol ‘REZI’.
It’s worth noting here that Resideo is primarily going to deal with security and critical comfort solutions, mostly for residential environments.
The spin-off is likely to mark the end of Honeywell’s portfolio transformation strategy, once it finally gets completed in October 2018. These tactical initiatives will help the company to concentrate on high-growth industrial businesses and thus boost organic growth. Further, these strategies will expand margins and strengthen balance sheet.
Zacks Rank & Stocks to Consider
With a market capitalization of $122.3 billion, Honeywell presently carries a Zacks Rank #3 (Hold). The company stands to gain from solid demand for its products, improved productivity and commercial excellence. However, it currently faces headwinds from rising costs and expenses.
Over the past three months, Honeywell’s shares have yielded 13% return, outperforming 6.3% increase recorded by the industry.
Furthermore, the stock’s earnings estimates are currently pegged at $8.15 for 2018 and $8.77 for 2019, reflecting growth of 0.1% and decline of 1% from respective 60-day-ago tallies.
Honeywell International Inc. Price and Consensus
Honeywell International Inc. Price and Consensus | Honeywell International Inc. Quote
Better-ranked stocks in the industry are Federal Signal Corporation (FSS - Free Report) , ITT Inc. (ITT - Free Report) and Danaher Corporation (DHR - Free Report) . While Federal Signal sports a Zacks Rank #1 (Strong Buy), both ITT and Danaher carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates on Federal Signal and ITT have improved for the current year while remained unchanged for Danaher. Further, earnings surprise for the last reported quarter was a positive 22.48% for Federal Signal, 6.82% for ITT and 4.95% for Danaher.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>